American Woodmark Corporation Announces Fourth Quarter Results
Tuesday, May 30, 2017 6:30:00 AM ET
American Woodmark Corporation (AMWD ) today announced results for its fourth fiscal quarter ended April 30, 2017.
Net sales for the fourth fiscal quarter increased 7% to $258.7 million compared with the same quarter of the prior fiscal year. Net sales for the full fiscal year increased 9% to $1,030.2 million from the comparable period of the prior fiscal year. The Company experienced growth in all channels during the fourth quarter of fiscal year 2017.
Net income was $17.3 million ($1.06 per diluted share) for the fourth quarter of the current fiscal year compared with $13.4 million ($0.81 per diluted share) for the fourth quarter of the prior fiscal year. Exclusive of after-tax non-operating charges related to corporate business development expenses in fiscal 2017 and idle land disposal in fiscal 2016, the Company generated $18.6 million ($1.13 per diluted share) of net income for the fourth quarter of the current fiscal year compared with $14.2 million ($0.86 per diluted share) for the same period of the prior fiscal year.
Net income for the entire fiscal year 2017 was $71.2 million ($4.34 per diluted share) compared with $58.7 million ($3.57 per diluted share) for the same period of the prior fiscal year. Exclusive of after-tax non-operating charges related to corporate business development expenses in fiscal 2017 and idle land disposal in fiscal 2016, the Company generated $72.9 million ($4.45 per diluted share) of net income for the entire current fiscal year compared with $59.5 million ($3.62 per diluted share) for the same period of the prior fiscal year.
Gross profit for the fourth quarter of the current fiscal year was 22.3% of net sales compared with 20.3% in the same quarter of the prior year. Gross profit for the entire current fiscal year was 21.8% of net sales compared with 21.1% for the same period in the prior year. Gross profit in the current quarter and current fiscal year was favorably impacted by higher sales volume, lower labor benefit costs and improved operating efficiency.
Selling, general and administrative costs for the fourth quarter of fiscal year 2017 were 12.1% of net sales compared with 11.1% in the same quarter of the prior year. Selling, general and administrative costs for the entire current fiscal year were 11.3% of net sales compared with 11.2% for the same period in the prior year. The Companys expense ratio was negatively impacted in the current quarter and fiscal year by corporate business development expenses related to a potential M&A target that we ultimately decided not to pursue.
The Company generated net cash from operating activities of $77.1 million during the current fiscal year compared with $74.6 million during the same period in the prior year. The increase in the Companys cash from operating activities was driven primarily by higher operating profitability and accrued expenses which was partially offset by higher discretionary contributions to the Companys pension plans. Net cash used by investing activities was $53.7 million during the current fiscal year compared with $40.8 million during the same period of the prior year due to an increased net investment of $28.3 million in certificates of deposit, which was partially offset by decreased investment in property, plant and equipment. Net cash used by financing activities of $20.8 million increased $11.9 million during the current fiscal year compared to the same period in the prior year as the company reduced long-term debt by $7.2 million and realized a $5.7 million decrease in proceeds from the exercise of stock options. This impact was partially offset by a $3.2 million decrease in repurchases of common stock.
American Woodmark Corporation manufactures and distributes kitchen cabinets and vanities for the remodeling and new home construction markets. Its products are sold on a national basis directly to home centers, major builders and through a network of independent distributors. The Company presently operates nine manufacturing facilities and seven service centers across the country.
Safe harbor statement under the Private Securities Litigation Reform Act of 1995: All forward--looking statements made by the Company involve material risks and uncertainties and are subject to change based on factors that may be beyond the Companys control. Accordingly, the Companys future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Such factors include, but are not limited to, those described in the Companys filings with the Securities and Exchange Commission and the Annual Report to Shareholders. The Company does not undertake to publicly update or revise its forward looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.
AMERICAN WOODMARK CORPORATION
Unaudited Financial Highlights
(in thousands, except share data)
Three Months Ended Twelve Months Ended
April 30 April 30
2017 2016 2017 2016
Net Sales $ 258,737 $ 240,923 $ 1,030,248 $ 947,045
Cost of Sales & Distribution 201,166 192,052 805,612 747,351
Gross Profit 57,571 48,871 224,636 199,694
Sales & Marketing Expense 18,851 17,313 70,979 66,489
G&A Expense 12,336 9,398 45,419 40,045
Operating Income 26,384 22,160 108,238 93,160
Interest & Other (Income) Expense (378) 1,311 (687) 1,374
Income Tax Expense 9,414 7,477 37,726 33,063
Net Income $ 17,348 $ 13,372 $ 71,199 $ 58,723
Earnings Per Share:
Weighted Average Shares Outstanding - Diluted 16,389,578 16,415,321 16,398,240 16,441,571
Income Per Diluted Share $ 1.06 $ 0.81 $ 4.34 $ 3.57
Condensed Consolidated Balance Sheet
April 30 April 30
Cash & Cash Equivalents $ 176,978 $ 174,463
Investments - certificates of deposit 51,750 25,750
Customer Receivables 63,115 55,813
Inventories 42,859 39,319
Other Current Assets 4,526 6,864
Total Current Assets 339,228 302,209
Property, Plant & Equipment 107,933 99,332
Investments - certificates of deposit 20,500 18,250
Other Assets 33,612 46,569
Total Assets $ 501,273 $ 466,360
Current Portion - Long-Term Debt $ 1,598 $ 1,574
Accounts Payable & Accrued Expenses 99,899 90,739
Total Current Liabilities 101,497 92,313
Long-Term Debt 15,279 22,145
Other Liabilities 32,048 71,141
Total Liabilities 148,824 185,599
Stockholders Equity 352,449 280,761
Total Liabilities & Stockholders Equity $ 501,273 $ 466,360
Condensed Consolidated Statements of Cash Flows
Twelve Months Ended
Net Cash Provided by Operating Activities $ 77,080 $ 74,604
Net Cash Used by Investing Activities (53,744) (40,773)
Net Cash Used by Financing Activities (20,821) (8,909)
Net Increase in Cash and Cash Equivalents 2,515 24,922
Cash and Cash Equivalents, Beginning of Period 174,463 149,541
Cash and Cash Equivalents, End of Period $ 176,978 $ 174,463
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SOURCE American Woodmark Corporation